aimtobeacpa
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| Posted: 27 May 2011 at 09:29 | IP Logged
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Donation of a work of art to a qualified organization is deductible as an itemized deduction. There are limits, though, to the amount that can be taken. The donor can deduct the fair value of the art but the amount will be limited to 30 percent of adjusted gross income unless an election is made to forgo the deduction of the appreciation. The limit would then be 50 percent of adjusted gross income.Donation of professional services are not deductible, but appropriate expenses spent to provide those services are deductible.
Zachary may deduct 80% of his donation. The benefit received rule requires that when a taxpayer makes a contribution to a qualified charity, the deductible charitable contribution is reduced by the value of whatever is received by the taxpayer. An exception to this rule applies to contributions made to a college or university wo receives the right to purchase tickets to an athletic event. Eighty percent of the payment is treated as a charitable contribution regardless of whether the tickets would have been otherwise available. The value of donated services or foregone income are not tax deductible but unreimbursed expenses related to these activities may be deductible. Nancy received more in value than she paid out so she has not given up anything.
Long-term capital gain property is deductible at fair value if this amount does not exceed 30 percent of adjusted gross income when to use 50% deduction
can some one provide exact details if charitable contribution is given then how is it done?..limits...i didnt knew abt all aabove mentioned above in cpareviewforfree
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Topic: charitable
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